Core Viewpoint - Nexperia, a Chinese-owned Dutch chipmaker, is facing supply chain disruptions due to a standoff between its European operations and its Chinese packaging plant, prompting customers to seek temporary workarounds to alleviate chip shortages in the automotive market [1][2]. Group 1: Supply Chain Issues - A workaround is being developed by customers to bypass the conflict between Nexperia's European unit and its Chinese packaging facility, which is not a permanent solution and may not be feasible for smaller clients [2][3]. - The standoff was initiated by the Dutch government's seizure of Nexperia over concerns regarding technology transfer, leading to halted shipments of wafers from Europe to China [2][3][7]. Group 2: Impact on Automotive Market - The scarcity of Nexperia chips has negatively impacted the production of cars and parts, affecting major automakers and suppliers such as Volkswagen, Hella, Bosch, Aumovio, and Honda [2][4]. - The Chinese government has provided temporary relief by relaxing export controls on chips produced at the Dongguan plant, which may help alleviate some pressure on car manufacturers [5]. Group 3: Workaround Details - The workaround involves clients purchasing silicon wafers directly from Nexperia's factory in Hamburg and then transporting them to China for final packaging at the Dongguan plant [3][6]. - This approach treats Nexperia as two separate entities for production and packaging, addressing quality concerns while ensuring that both sides are compensated for their work [6]. Group 4: Current Operations - Nexperia halted wafer shipments to its Chinese subsidiary on October 26 due to nonpayment, and the Chinese arm is currently depleting its stockpiles of finished products [7]. - There are ongoing negotiations among various companies to secure exclusive production by sourcing wafers from Nexperia Europe for their own needs [7].

Company Overview - Siltronic has over 50 years of history in silicon technologies and is a supplier to top semiconductor producers[5,7] - The company has 4,400 employees worldwide and achieved sales of EUR 1.4 billion in 2024[3] - Siltronic reported a 26% EBITDA margin in 2024[5] - The company is positioned as the only Western-based wafer manufacturer[16] Market and Demand - Wafer demand is expected to continue growing at a CAGR of 4-5%, driven by 300 mm wafers[19] - Wafer consumption is expected to increase by 8% in 2025 due to AI momentum[21] - In 2024, the demand by segments was: Memory 24%, Logic 39%, and Power/Others 37%[25] Strategic Initiatives - Siltronic inaugurated a new 300 mm fab in Singapore, with an expected EBITDA margin above 50% mid-term[36,37] - The company has invested more than EUR 1 billion in Freiberg since 1995 to improve product mix[44] - R&D spending is planned at 4-5% of sales[48] Financial Outlook - Capex for 2025 is expected to be between EUR 360 and 380 million[67,76] - The company expects interest expenses in the ballpark of EUR 50 million in 2025[63] - Sales are expected to be mid-single digit below 2024, with an EBITDA margin between 22% and 24%[76] Sustainability - Siltronic aims for a 42% reduction in CO2 emissions by 2030 (base year 2021) and net zero by 2045[83] - The company targets a 60% share of renewable energy by 2030 and 100% by 2045[83]

Core Viewpoint - Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) is expected to report positive results, with strong demand for high-performance computing and AI infrastructure driving growth [1] Company Overview - Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) specializes in the production and sale of integrated circuits and semiconductor devices, providing fabrication and related services [1] - The company is recognized for its leadership in leading node manufacturing, which enables it to capture market share and benefit from a robust demand environment [1] Market Context - The company is a key supplier for major clients such as AMD and NVIDIA, indicating its significant role in the semiconductor industry [1] - There is a competitive landscape where certain AI stocks are perceived to offer greater upside potential with less downside risk compared to TSM [1]